Bill Text: NY S05943 | 2019-2020 | General Assembly | Introduced


Bill Title: Requires the commissioner of health to include in annual reports information regarding the cost and increase in cost of the ten prescription drugs on which the state expends the most money and which have had certain costs increased by fifty percent or more over the past five years or by ten percent or more during the previous calendar year.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced) 2019-05-16 - REFERRED TO HEALTH [S05943 Detail]

Download: New_York-2019-S05943-Introduced.html



                STATE OF NEW YORK
        ________________________________________________________________________

                                          5943

                               2019-2020 Regular Sessions

                    IN SENATE

                                      May 16, 2019
                                       ___________

        Introduced  by  Sen. SALAZAR -- read twice and ordered printed, and when
          printed to be committed to the Committee on Health

        AN ACT to amend the public health law,  in  relation  to  requiring  the
          commissioner  of  health  to  include  in  annual  reports information
          regarding the cost and increase in cost of certain prescription drugs

          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:

     1    Section  1.  Subdivision 1 of section 277 of the public health law, as
     2  amended by section 18 of part A of chapter 56 of the laws  of  2013,  is
     3  amended to read as follows:
     4    1.  The commissioner, in consultation with the drug utilization review
     5  board, shall undertake periodic  reviews,  at  least  annually,  of  the
     6  preferred drug program which shall include consideration of:
     7    (a)  the  volume of prior authorizations being handled, including data
     8  on the number and characteristics of prior  authorization  requests  for
     9  particular prescription drugs;
    10    (b) the quality of the program's responsiveness, including the quality
    11  of the administrator's responsiveness;
    12    (c) complaints received from patients and providers;
    13    (d)  (i)  a  list  of  the  ten  prescription drugs on which the state
    14  expends the most money and for which the wholesale acquisition cost  has
    15  increased  by  fifty  percent or more over the past five years or by ten
    16  percent or more during the  previous  calendar  year.  The  commissioner
    17  shall: include the percentage of the wholesale acquisition cost increase
    18  for  each  drug  on the list; rank the drugs on the list from those with
    19  the largest increase in wholesale acquisition cost  to  those  with  the
    20  smallest  increase;  indicate whether each drug was included on the list
    21  based on its cost increase over the past five years or during the previ-
    22  ous calendar year, or both; and provide the  state's  total  expenditure
    23  for each drug on the list during the most recent calendar year; and

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD11425-01-9

        S. 5943                             2

     1    (ii)  a  list of the ten prescription drugs on which the state expends
     2  the most money and for which the cost to the state, net of  rebates  and
     3  other price concessions, has increased by fifty percent or more over the
     4  past  five  years or by ten percent or more during the previous calendar
     5  year.  The commissioner shall rank the drugs on the list from those with
     6  the greatest increase in net cost to those with  the  smallest  increase
     7  and  indicate  whether  each  drug was included on the list based on its
     8  cost increase over the past five years or during the  previous  calendar
     9  year, or both; and
    10    (iii)  a manufacturer of a prescription drug that appears on a list as
    11  described in subparagraph (i) or (ii) of this paragraph shall submit  to
    12  the  commissioner  a report that explains: (A) all material factors that
    13  have contributed to the wholesale acquisition  cost  increase  for  such
    14  drug  including  but  not  limited to materials and manufacturing costs,
    15  spending on research and development costs, spending  on  marketing  and
    16  advertising,  and  spending  on  patient  assistance  programs;  (B) the
    17  percentage of the total wholesale acquisition cost increase attributable
    18  to each factor; (C) an  explanation  of  the  role  of  each  factor  in
    19  contributing  to  the wholesale acquisition cost increase; (D) the total
    20  revenue and the net profit of  the  manufacturer  for  the  most  recent
    21  calendar  year;  and  (E)  any  additional  information the manufacturer
    22  chooses to provide related to drug pricing decisions;
    23    (e) the savings attributable to the state, and to each county and  the
    24  city of New York, due to the provisions of this article;
    25    [(e)] (f) the aggregate amount of supplemental rebates received in the
    26  previous  fiscal  year and in the current fiscal year, to date; and such
    27  amounts are to be broken out by fiscal year and by month;
    28    [(f)] (g) the education and outreach program  established  by  section
    29  two hundred seventy-six of this [article] title.
    30    § 2. This act shall take effect immediately.
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